Pakistan is a country that has been striving for financial stability for a long time. The lack of a proper payment system has been one of the reasons, making it difficult for individuals and businesses to deal with payments effectively. In order to tackle this issue, the Pakistani government has introduced a state-of-the-art payment system called RAAST.
RAAST (Real-Time Automated Settlement and Transfer System) is aimed at streamlining the payment system in Pakistan. The system is designed to make electronic payments more efficient, secure, and transparent, thus helping the government in its efforts to modernize the financial sector.
RAAST is a project initiated by the State Bank of Pakistan (SBP) in collaboration with various financial institutions. The system is built on the latest technology and is expected to revolutionize the way payments are made in Pakistan.
The RAAST system uses a real-time settlement and clearing mechanism, which means that payments made through the system are settled instantly. This is in contrast to the conventional system, where payments take several days to be cleared and settled.
The system is also extremely secure, as it uses advanced encryption and security protocols to safeguard against fraud and cyber-attacks. This is especially important in the current digital age, where cybercrime is a real threat to financial security.
RAAST initially launched limited transactions such as treasury single account (TSA), pensions, social protection program (SPP), and BISP payment transactions. However, the government aims to extend the system’s application to other payment channels, such as online shopping and utility bill payments, among others.
One of the notable aspects of RAAST is its affordability. Unlike traditional banking channels, which can be costly, RAAST charges minimal fees, making it accessible to low-income groups and small businesses. This will aid in the enhancement of financial inclusion in Pakistan and increase the country’s economic growth.
In conclusion, RAAST is a landmark development in Pakistan’s financial sector. By providing a modern, efficient, and secure payment system, will help to modernize the country’s economy and aid in its long-term growth. It will also make it easier for individuals ho and businesses to conduct transactions and manage their finances, contributing to the overall well-being of the country.
Raast is Pakistan’s first instant payment system that will enable end-to-end digital payments among individuals, businesses, and government entities instantaneously. The state-of-the-art Pakistan’s Faster Payment System will be used to settle small-value retail payments in real-time while at the same time providing cheap and universal access to all players in the financial industry including commercial banks, microfinance banks, government entities, and fintech (EMIs & PSPs).
Pakistan has had low electronic transactions for a number of reasons including low banking penetration, lack of trust and awareness of digital payment methods, limited interoperability, difficult accessibility, and high cost of transactions. The Real-Time Gross Settlement System (RTGS) of Pakistan provides instant payment settlements for large value and corporate transactions only. Raast: Pakistan’s Instant Payment System will facilitate retail payment settlements with great efficiency.
Raast aims to address some key industry challenges within the payment ecosystem: